H2 FY25 Results Presentation

Spark New Zealand FY25 Results Summary Jolie Hodson, Chief Executive Officer Stewart Taylor, Chief Financial Officer

20 August 2025

FY25 results summary FY25 result within updated guidance

Stabilising our performance

FY25 Guidance FY25 Outcome

Adjusted $1,040m-$1,100m $1,060m EBITDAI

Capex ~$415m - $435m $429m Dividend 25.0 cps 25.0 cps

Significant transformation on track

Resetting our business and cost base for a stronger future

1. Market momentum in core business

   
   
   

2. Simplified portfolio

3. Transformed cost base

4. Realising value from data centre business

   Strategy and capital management reset

   Setting a path for sustainable value creation

   • New five-year strategy focuses Spark on core business of connectivity

     
     
     

   • Revised Capital Management Framework to deliver sustainable dividend paid out of free cash flow

FY25 financial snapshot

Adjusted revenue (1)(3)

$3,700 million

4.2% decrease vs. FY24

Reported revenue (2)

$3,725 million

2.5% decrease vs. FY24

Adjusted EBITDAI(3) (4)

$1,060 million

8.9% decrease vs. FY24

Reported EBITDAI (2) (4)

$1,053 million

7.7% decrease vs. FY24

Adjusted NPAT (3)

$227 million

33.6% decrease vs. FY24

Reported NPAT

$260 million

17.7% decrease vs. FY24

Capex (4)

$429 million

17.2% decrease vs. FY24

Free cash flow (4)

$330 million Flat vs. FY24

FY25 final dividend

Final dividend of 12.5cps, taking total FY25 dividend to 25.0 cps

Overall return on invested capital ROIC (5) of 8.7%

(1) Operating revenues and other gains

(2) Reported revenue and EBITDAI exclude the results of the data centre business which has been classified as a discontinuing operation in the Financial Statements (see Appendix for further detail).

(3) Adjusted revenue and EBITDAI include the data centre business and exclude the Connexa transaction gain on sale ($71m) and transformation costs ($53m) associated with the cost out programme. In addition, FY24 NPAT has been adjusted to include the data centre business results and exclude the $26 million impact of the government change to tax depreciation rules. See Appendix 1 for further details.

(4) Earnings before finance income and expense, income tax, depreciation, amortisation and net investment income (EBITDAI) and capital expenditure (CAPEX) are non-Generally Accepted Accounting Principles (non-GAAP) performance measures that are defined in note 2.5 of Spark's Annual Report. Free cash flow is also a non-GAAP measure and is defined on page 7 of Spark's detailed KPIs.

(5) ROIC is calculated as net operating profit (EBITDAI less depreciation and amortisation) after tax

(at 28%) as a percentage of Invested Capital (total debt including leases plus equity)

Significant transformation on track

We have taken action to transform our business and cost base - with more still to do

What we said we would do

Telco core

Drive momentum in core business

Portfolio

Review non-core assets and simplify Enterprise & Government (E&G)

Cost base

Expand cost-out programme to deliver higher savings over multiple years

Realising value

Secure a capital partner for our data centre business

What we've done so far

• Grew consumer and SME pay monthly connections and ARPU (when excluding impact of insurance)

• Prepaid connection decline stabilising in H2 25

• Stabilised connections in Enterprise & Government (E&G)

• Divested Connexa and HTAL shareholdings, generating $356 million(1)in proceeds

• Integrated B2B subsidiaries into E&G division and simplified portfolios

• Created new technology delivery model, supported by four global partnerships

• Realised $85 million in cost savings in H2 25 vs H2 24

• On track to deliver annualised benefits of $110m-$140m by FY27(2)

• Sale of 75% stake in data centre business expected to deliver initial cash proceeds of ~$486 million (3)at completion, while retained 25% stake supports long-term shareholder value creation (subject to regulatory and customary consents)

See slides

7-11

12

13-15

17-20

(1) $309 million from Connexa transaction (net of transaction costs),

$47 million from HTAL transaction received 17 July 2025

(2) Subject to no material adverse change in operating outlook (3) Final net proceeds subject to completion adjustments

New five-year strategy

Refocusing on our core connectivity business to grow competitive advantage and shareholder returns

See slides 30-35 for strategy summary

Connectivity is our core business

5%

25%

70%

revenue

Mobile

40%

30%

5%

15%

80%

gross margin

Mobile

52%

28%

Mobile and connectivity is central to growth and our priority for investment

In FY25 connectivity contributed:

Mobile

Other connectivity1

Cloud and IT Data centres

(1) Other connectivity includes broadband, managed data and networks, collaboration, IoT, and voice

Mobile performance overview

Performance impacted by removal of insurance and price competition in E&G and consumer prepaid, while pay monthly remains strong

FY24

FY25

% change

Connections and ARPU - Consumer and SME

Connections and ARPU - Enterprise and Government

Connections

324k

318k

(1.9%)

ARPU

$30.44

$26.22

(13.9%)

Mobile Service Revenue

Total (2)

Consumer and SME Enterprise and Government

Consumer and SME Pay Monthly

Increasing ARPU excluding insurance, combined with modest connection growth

• Connection growth reflects balance of competing in market and ARPU optimisation

  Pay monthly connections 1,193k	1,199k	0.5%
  Prepaid connections 1,173k	1,112k	(5.2%)
  Pay monthly ARPU $44.93	$44.68	(0.6%)
  Prepaid ARPU $15.99	$16.10	0.7%

• Underlying ARPU continues to improve - H2 ARPU up ~3% excluding insurance1,

  driven by connection ARPU, handset demand, and December price increases

• Offset by reduction in insurance revenue - impact will not reoccur in FY26

  Consumer Prepaid

  ARPU grew, connections declined in competitive market

• Spark connection decline in H1 driven by price competition in low-spend environment,

  while Skinny continues to grow

• December plan refresh and price increases maintained ARPU - with further improved offers creating positive trading momentum

  $1,010m	$987m	(2.3%)
  $869m	$861m	(0.9%)
  $120m	$100m	(16.7%)

  Enterprise & Government (E&G)

  Connections stabilised in H2, competitive pressure on ARPU remains

• Connections stabilised in H2 25

• Net positive connections from customer bids in H2 25

• Rate of ARPU reduction slowed in H2 from H1, however competitive market conditions remain

  (1) Compared to H2 24

  (2) Total includes wholesale

  Market growth improving and Spark growing in H2

  Spark remains the #1 provider by some distance, with positive momentum as market growth improves

  Total mobile market performance (1)

  • Total FY25 mobile market growth was 1.2%, lower than IDC

    estimated growth of 3% (2)

  • Second half growth of 1.9% an improvement on a flat H1 (3)

    Spark mobile and share performance

  • Spark's total mobile service revenues grew 1.0% from H1 25 to H2 25

    - resulting in a small market share decline of 0.4% over this time

  • Positively, Spark's market share stabilised in the fourth quarter, in a

    growing market

    2degrees

    21.2%

    (+0.3%)

    MVNO

    1.9%

    (+0.4%)

    Spark

    41.4%

    (-0.4%)

    One NZ 35.5%

    (-0.3%)

    (1) All comparisons are market share estimates sourced from IDC as at 30 June 2025 (2)Comparing FY24 to FY25 (3)Comparing H2 FY25 to H1 FY25

    Spark FY25 Results Summary 09

    
    
    Driving mobile momentum into FY26

    Initiatives implemented in FY25 are lifting performance into FY26 Q1

    Consumer Pay Monthly

    Focus: driving connection and ARPU growth with

    brand and product investment

    • Pay monthly big data plans - introduced end October, with acquisition up ~7% vs. prior comparable period

    • Plan ARPU continues to grow - will be further

      supported by 1 August '25 $2-$5 price increases

    • Pipeline of new products - Kids Plan launched,

      satellite-to-mobile in H2 26

      Pay Monthly ARPU

      $1.06		$0.54		$0.04		$0.04
      $44.45		$43.82		$44.21		$45.08

      Insurance
      
      

      Consumer Prepaid

      Focus: maintain stable ARPU, while upweighting

      competitive responses

  • Plan refresh completed in December '24 has

    maintained ARPU

  • Connection decline stabilising in H2 25

  • Improvement in net connections post the introduction of new market offers

    Prepaid ARPU

    $16.09 $15.88 $16.21 $16.00

    Enterprise and Government

    Focus: hold customer base, and compete to win on

    more than price to mitigate ARPU impact

    • Connections rebased with change in Enterprise & Government workforces - decline stabilising in H2

    • Retained >95% of top 50 customers

    • Won ~7k new connections to be on-boarded in Q1 FY26 - Summerset, Deloitte, New Zealand Red Cross

E&G Connections

340k

330k

320k

310k

H1 24 H2 24 H1 25 H2 25

H1 24 H2 24 H1 25 H2 25

300k

H1 24 H2 24 H1 25 H2 25

Spark FY25 Results Summary 10

Connectivity and IT performance summary

Broadband revenues stabilised, public cloud continued to grow, IT services remained challenging

Connectivity

• Broadband connections declined 3.8% in a low-spend environment - focused on increased bundling with mobile in FY26 to support volumes

• Broadband revenue stabilised to largely flat following a 2.3% decline at H1 - we remain focused on margin improvement as fibre company costs are passed through

• Managed data and networks revenue declined in line with long-term trend of

  customers migrating from legacy products to modern, lower ARPU alternatives

• Legacy voice revenues declined in line with long-term trend

• Collaboration revenues increased due to growth in cloud contact centres and meeting room upgrades

• IoT revenue grew as connections increased 16% to 2.38 million

  IT

• Cloud revenues grew as public cloud uptake continued to increase

• IT services declined as challenging economic conditions dampened demand

  
  
  Review of non-core assets completed

  Targeted divestments completed or underway to simplify portfolio and further strengthen the balance sheet

  Shareholdings

  Connexa

  Asset Outcome

  
  
  

  • Sale of remaining stake (~17%) to global investment group CDPQ for $309 million net of transaction costs

  • Valued Connexa on a consistent basis with previous NZ mobile tower EBITDAI multiples

  • Proceeds used to reduce net debt and to be partially returned to shareholders through the H2 25 dividend

Hutchison Telecommunications (Australia) Limited (HTAL)

• Sale of 10% stake in HTAL delivered NZ$47 million in proceeds in July 2025

• Offer of A$0.032 per share a 45% premium1to the upper end of the Independent Valuation range, and a 39% premium to the three-month VWAP2

• Proceeds used to reduce net debt

  Enterprise and Government subsidiaries and products

  Southern Cross (SC) • Maintain stake in near term as SC pursues self-funded expansion investments within the active subsea cable market

  CCL and Qrious • Product portfolios and operating models simplified, and businesses integrated into Spark

  Digital Island • Divested non-mobile business to support simplification

  Product portfolio • Legacy security and network product simplification on track to complete Q1 26

  Other subsidiaries

  MATTR • Process commenced to introduce new investors

  (1)The Independent Valuation included the value of the sale of the TPG fibre assets to Vocus (2)Volume weighted average price on the ASX prior to the announcement of the takeover offer

  New technology delivery model introduced

  Leveraging four strategic global partnerships to transform cost base and customer experiences

  Technology layer

  Network

  Cloud

  IT

  Strategic partner

  Reduces network operating costs while accelerating AI and

  automation capabilities for better customer experiences

  Provides compelling hybrid cloud offering for customers, modernises Spark's hybrid cloud environment, accelerates AI uptake, and improves overall cloud economics

  Reduces IT operating costs, while accelerating delivery of digital and AI- driven customer experiences

  Reduces IT operating costs, and ensures Spark's IT environments are continuously updated

  Spark retains its critical assets and infrastructure and control over all components of competitive advantage -

  such as future network planning, critical incident oversight, technology architecture, and its product design and innovation roadmap

  Spark FY25 Results Summary 13

  
  
  
  
  
  Spark a leader in AI and automation capability in New Zealand

  Enterprise-wide

  tech enablement

  Global

  partnerships

  FY26 focus

  Scaling SparkGPT to reduce cycle

  time of key processes, improving speed and efficiency

  Augmenting care teams with

  Agentic AI agents that solve queries and issues faster -immediate focus on service and billing

  Scale network AI and automation

  - reducing manual fault handling by up to 30%

  
  
  

  Capability accelerating with agentic AI and global partnerships, supporting cost-out and customer experience

  
  
  

  Strategy

  and talent

  Responsible AI

  Data capability

  Predictive models and Gen AI

  High-value use cases

  Existing AI capability

  People

  • Improved productivity: agentic AI tool, SparkGPT, an assistant for employees - providing rapid access to information and taking automated action to reduce manual work

    Customers

  • Shorter wait times: customer care teams enabled by call summarisation (saving ~1.5-2 mins per call) and AI assistants -

    answering ~20k team questions a month and reducing queries to back-office teams by 60%

  • Faster to market: predictive models automating and personalising customer comms, reducing campaign-to-market time from weeks to hours, and identifying sales priorities to best serve customers and grow revenue

    Network

  • Reduced resolution times: real-time network performance monitoring that detects anomalies and advanced fault management that automates incident analysis and reduces customer experience impacts

    Spark FY25 Results Summary 14

    
    
    Expanded cost reduction programme on track

    $85m reduction in H2 25 delivered through labour, other opex, and product costs reductions

    FY25 labour and opex reduction

    • At H1 25 Spark communicated an expanded cost-reduction target of

      $80m-$100m from H2 24 to H2 25

    • This was delivered through:

      • $61 million reduction in labour costs (30 June ~1,300 FTE reduction YoY)

      • $4m reduction in other opex costs

      • $20m reduction in product costs - including network and IT costs

    H2 25 vs H2 24 YoY cost reductions

    $20m

    $61m

    $4m

    Labour

    Other opex

    Product costs Total cost savings

    $85m

FY26 labour and opex reduction

• On track to deliver annualised savings of $110m-$140m by end FY271

Year-on-year labour costs and other opex reductions

$10m $30m -$50m

FY25 Actual DCs deconsolidation FY26 labour and

other opex

FY26 Target

(1) Subject to no material adverse change in operating outlook

Spark FY25 Results Summary 15

Sustainability performance continues to mature

Spark remains committed to its FY30 SBTi1emissions reduction target and is taking meaningful steps to work towards it

Rising national grid emissions factor contributed to FY25 emissions increase

• Underlying performance improvements, with electricity consumption down 4.9%

• The winter energy crisis (caused by reduced hydro generation) drove the grid emissions factor up -contributing to an 11% YoY increase in scope 1 and 2 emissions, which are tracking 42% above our SBTi 2030 emissions reduction target pathway

  Renewable partnership will decouple reported electricity emissions from national grid factor

• Ten-year renewable energy partnership with Genesis Energy commenced in Q3, when the Lauriston

  Solar Farm began generation

• Enables Spark to reduce reported electricity emissions by linking to new renewable generation -

  totalling a 3,954 tCO2e reduction in H2 (market-based)

  Spark continues to support digital equity and safety

• Skinny Jump now supporting close to 34,000 households in need with subsidised broadband

• 5G now in 130 locations, covering over half of the population

• Close to 1.3 million SMS scam texts blocked on Spark's network since October 2024

  (1) Science Based Target initiative

  Spark FY25 Results Summary 16

  Data centre strategy update

  Spark FY25 Results Summary

  
  
  
  
  
  Agreement reached to sell a 75% stake in data centre business

  Spark continues to participate in high growth market through retained 25% stake

  DC Co - transaction features

  • 'DC Co' created to hold all data centre assets and operations (including resource consents), funded through a mix of equity and debt at completion

  • DC Co will have its own Board, management team, and debt financing facilities (non-recourse to Spark)

  • Spark expects to spend $50m-$70m capex in H1 26 prior

  to assumed transaction completion date4

  • DC Co will be equity accounted from completion -

  estimated to be 1 January 20264

  • Earnings and cashflow generated by DC Co will be reinvested in the growth of the business

  High quality data centre partner secured

  • Pacific Equity Partners (PEP) has joined Spark as an investment partner for its data centre business - securing a funding pathway to build out the planned 130MW+ development pipeline

    Realising value in the short and long term

  • The partnership realises value for data centre assets in the short term, while enabling Spark to continue participating in the growing market through a 25% retained stake - creating further value for shareholders over the long term

    Strong multiple compared to similar transactions

  • Transaction values 'DC Co' at $705m1, and represents an EV/EBITDA multiple of 30.8x2based on FY25 pro-forma EBITDA

  • Spark expects to receive initial cash proceeds of ~$486m3at completion, with additional deferred cash proceeds of up to ~$98 million contingent on the achievement of performance-based objectives by the end of the CY27 (totaling ~$583m if the full earn-out is achieved)

    Enables capital investment focus on core business

  • Proceeds will be used to reduce group net debt

  • Once the transaction is complete and DC Co's standalone funding facilities are in place, Spark's

annual capital contribution to fund the development pipeline is expected to be modest

(1) Headline enterprise value comprising base enterprise value of $575 million and up to a further $130 million of earn-out enterprise value

(2) Assumes FY25 pro forma EBITDA of $22.9m for Spark data centre business within the transaction perimeter

(3) Final net proceeds subject to completion adjustments

(4) Timing is an estimate only. The transaction is subject to regulatory and customary consents including Overseas Investment Office approval, with a targeted completion date of 31 December 2025

DC Co has a leading New Zealand data centre platform

Market continues to grow as cloud and AI uptake increases demand for data storage and compute in New Zealand

1. Spark estimate

2. Recurring revenue as at H1 25

3. Based on a total contract value weighted average of remaining lease years as at 31-Mar-25 including renewal rights

4. The Genesis renewable energy partnership, and REC matching, is expected to cover all current sites with the exception of Takanini Pod 2 and the University of Waikato which are recent additions to the portfolio

   
   
   Data centre business continued to grow in FY25

   Development pipeline increased to 130MW+ and revenue and margin grew through scaling utilisation and new customer wins

   
   
   

   	FY24	FY25	% change
   Revenue (1) (2)	$45m	$50m	11.1%
   Gross margin(2)	$43m	$47m	9.3%

   Overall performance

   • Continued revenue growth, with high levels of utilisation at 88%

   • Revenue and gross margin growth supported by scaling utilisation, customer wins, and price increases

     Development pipeline increased to 130MW+ (3)

     Takanini Campus

     • Pod 1 & 2 capacity close to 100% contracted/committed

     • Resource consent received for Pod 3 (new 15MW data centre) - finalising design, with Stage 1 completion targeted for FY28

     • 2.6 ha of land contracted in July 2025, enabling future expansion of Pods 4 and 5

       Aotea Campus

     • 1MW expansion progressing on time and budget

     • New customer wins onboarded in H2 FY25, including four global cloud/content providers

       North Shore Campus

     • Resource consent for data centre

       approved in June 2024

     • 4.0 ha site acquisition settled July 2025 for planned initial 40MW development

       (1) Note like-for-like revenue changed from previous reporting as Data Centres previously reported under Cloud and those branded CCL were consolidated

       (2) These results reflect the data centre business owned by Spark in FY25 and differ from DC Co when divested

       (3) Based on masterplans for Takanini Pods 4 and 5 which suggest capacity could be increased by 12MW

       Capital management reset

       Spark FY25 Results Summary

       
       
       Capital management reset

       Renewed capital management discipline

       Maintaining financial strength

   • Focused on a strong balance sheet, targeting metrics consistent with current credit rating

     Investment and portfolio management

   • Investments and M&A for growth must meet Spark's hurdle rates (see following slide)

   • New definitions of capex introduced:

     • BAU capex - all capital investment in the core business (excluding spectrum)

     • Strategic capex - any capital investment outside the core business, for example data centres

       Sustainable shareholder returns

   • Changes to Dividend Policy support a sustainable dividend, paid out of Free Cash Flow (FCF), including:

• New definition of FCF includes the impact of changes in working capital and capital expenditure used to operate the core business

• FCF continues to exclude spectrum and strategic capex (definition outlined above)

• Payout ratio updated to 70-100% of FCF, to provide flexibility if needed in the future

When applied to FY26, the dividend will be based on 100% of free cash flow (1)

(1) Subject to no material adverse change in operating outlook

Capital allocation for shareholder value creation

Updated Capital Management Framework introduced for FY26 onwards

Capital Management Framework

01

Maintaining financial strength

Focused on a strong balance sheet, targeting metrics consistent with current credit rating

02

Investment and portfolio management

BAU capex - used to to sustain and grow the core business organically (excluding spectrum) Strategic capex - capital investment outside the core business that meet Spark's hurdle rates

Investment and M&A for growth must meet hurdle rates

Hurdle rates: NPV positive and ROIC greater

than cost of capital

Long-run capex to revenue ratio of 10-12%

03

Sustainable shareholder returns

Dividend payout ratio of 70-100% of Free Cash Flow (FCF)

Dividend Reinvestment Plan utilised when appropriate, currently suspended

Growth in return on invested capital

Definitions

• Free Cash Flow: Reported EBITDAI, less adjusting items and non-cash gains or losses; BAU capex; interest costs; tax; lease costs; impact of changes in working capital, and

  excluding strategic and spectrum capex

• Strategic Capex: capex that is allocated to key strategic projects outside the core business that is expected to meet specific return thresholds (for example, data centres)

Financial summary

Spark FY25 Results Summary

FY25 financial summary

(1) Reported revenue and EBITDAI exclude the results of the data centre business which has been classified as a discontinuing operation in the Financial Statements (see Appendix for further detail).

(2) Adjusted revenue and EBITDAI include the data centre business and exclude the Connexa transaction gain on sale ($71m) and transformation costs ($53m) associated with the cost out programme. In addition, FY24 NPAT has been adjusted to include the data centre business results and exclude the $26 million impact of the government change to tax depreciation rules. See Appendix 1 for further details.

(3) ROIC is calculated as net operating profit (EBITDAI less depreciation and amortisation) after tax (at 28%) as a percentage of Invested Capital (total debt including leases plus equity).

FY25 financial summary

FY25 adjusted EBITDAI of $1,060m within updated guidance

Reported result

• Reported revenue and EBITDAI exclude the data centre business, classified as a discontinuing operation; and include the Connexa transaction gain on sale ($71m) and transformation costs ($53m) associated with the cost out programme

• Reported operating revenue and other gains of $3,725m was $95m lower than FY24

• Reported EBITDAI of $1,053m was $88m lower than FY24

• Net financing costs of $118m increased slightly from FY24 due to higher

  average net debt, despite the effective interest rate decreasing

• Tax expense of $95m reduced by $101m from FY24 due to:

  • a combination of lower earnings;

  • the FY25 $71m non-taxable gain on the Connexa transaction; and

  • the $26m additional tax in the prior year relating to the

    government's changes to tax depreciation on buildings

• This resulted in a lower FY25 effective tax rate of 27.4% vs 38.7% in FY24

• Reported NPAT of $260m was $56m lower than FY24

  Adjusted result

• Adjusted revenue and EBITDAI include the data centre business, and exclude the Connexa transaction gain on sale ($71m) and transformation costs ($53m) associated with the cost out programme

• In addition, the adjusted FY24 NPAT excludes the $26 million impact of the

  Government's changes to tax depreciation on buildings

• Adjusted operating revenue and other gains of $3,700m was $161m lower than FY24

• Operating expenses of $2,640m were $58m lower than FY24, due to lower volumes of products sold and H2 cost out initiatives

• As a result, adjusted EBITDAI of $1,060m was $103m lower than FY24

• Adjusted EBITDAI includes other gains of $31m, down 70% from the $102m

  reported in FY24

• Adjusted NPAT of $227m is $115m lower than FY24

  Capital expenditure

  Disciplined capital spending in FY25

  Spark CAPEX

  Maintenance

  Growth

  Spectrum

  $600m

  $500m

  $28m

  $400m

  Strategic1

  $300m

  BAU

  $200m

  $100m

  $0m

  FY24

  FY25

  Existing capex categories

  FY25

  New capex categories applied to FY25

  $350m

• $429m of total capex in FY25 is 17.2% lower than FY24 and represents 11.6% of adjusted revenue - within 10%-12% target range

• Capital expenditure in FY25 included:

  • Continued investment in mobile core and radio access network (RAN) delivering greater network capacity, coverage, and reliability

  • Investment in IT systems focused on automation and enterprise platform integration to drive efficiency

  • Fixed network and international cable capacity supporting greater resilience and capacity

• In line with revised Capital Management Framework, from FY26 capex will be reclassified into BAU and strategic, with the latter excluded from Free Cash Flow (see pages 22 and 23 for further details)

  (1) When applied to FY25, the only capital spend considered strategic was data centre investment. All other capex is considered BAU.

  Free cash flow

  Impact of lower EBITDAI offset by lower cash maintenance capex

  Adjusted free cash flow calculation	FY24 ($m)	FY25 ($m)	Change ($m)	Change (%)
  Reported EBITDAI	1,141	1,053	(88)	(8%)
  Add EBITDAI from discontinuing
  operations	22	25	3	14%
  Less adjusting items and non-cash gains	(78)	(48)	30	38%
  EBITDAI for free cash flow	1,085	1,030	(55)	(5%)
  Less
  Cash paid on maintenance capital	(350)	(293)	57	16%
  expenditure
  Cash paid on interest	(105)	(117)	(12)	(11%)
  Cash paid on tax payments	(189)	(186)	3	2%
  Cash paid on leases	(111)	(104)	7	6%
  Total cash payments on items above	(755)	(700)	55	7%
  Free cash flow (FY25 definition)	330	330	0	0%
  Total change in working capital -	(20)	11	31	NM
  increase in cash/(decrease in cash)
  Additional BAU capex	(191)	(81)	110	58%
  Free cash flow (new definition)	119	260	141	NM

• FY25 FCF of $330m is steady on FY24, as maintenance capex was reduced to offset EBITDAI reduction

• As outlined on slide 22, in future years the calculation of FCF will be updated to include:

  • The impact of changes in working capital; and

  • The new definition of BAU capex

• The new definition of FCF excludes spectrum and strategic capex and will be used to determine the calculation of the dividend each year

• Strategic capex is defined as capex allocated to key strategic projects outside the core business expected to meet Spark's hurdle rate (see slides 22 and 23)

  Debt and dividends

  FY25 net debt reduced through Connexa proceeds, with further improvement to come from FY26 transactions

  Spark Debt Profile

  Net debt ex leases

  Leases

  Net Debt/EBITDA

  $3,000m

  3.0x

  $2,500m

  2.5x

  $2,000m

  2.0x

  $1,500m

  1.5x

  $1,000m

  1.0x

  $500m

  0.5x

  $m

  0.0x

  H1 24 FY24 H1 25 FY25 H1 26PF

  1.7x

  2.2x

  2.1x

  1.8x

  2.3x

  
  
  

• At 30 June 2025 net debt at hedged rates was $1,475m:

  • Based on gross debt at hedged rates of $1,509m and cash

    of $34m

  • After including the impact of leases and the captive finance book (in line with S&P methodology) net debt was $2,127m

• Net Debt/EBITDA at 30 June 2025 was 2.2x compared to 2.3x at 31 December 2024 and 2.1x at 30 June 2024

  • Expect Net Debt/EBITDA ratio to reduce by ~0.5x post

    HTAL and once data centre transaction completes

• FY25 total divided of 25cps in line with updated guidance, including some of the proceeds from the Connexa sale which completed in H2 25

• Given the anticipated receipt of proceeds from the data centre transaction and subsequent reduction in net debt, the Dividend Reinvestment Plan has been suspended for the final FY25 dividend

SPK-30 Strategy

Spark FY25 Results Summary